Croman Tenants Receive First Round of Payments
Households received checks for $2,425 from the $8 million in restitution due to the landlord's illegal conduct.
NEW YORK CITY—The first round of checks is being mailed to current and former tenants of Steven Croman who submitted claims to the Croman Tenant Restitution Fund. The New York state attorney general investigated the residential landlord and filed a lawsuit against him, alleging illegal conduct including harassment, coercion, and fraud to force rent-regulated tenants out of their homes to convert the apartments into highly profitable market-rate housing. As a result, the tenants will receive a total of $8 million from Croman, the largest ever monetary settlement with an individual landlord in New York.
The first payments were for $2,425. The $8 million will be divided equally among eligible claimants in installments over a 38 to 42-month period. The first round of payments follows Croman’s initial $2 million payment to the fund.
in August 2018, the claims administrator hired by the attorney general mailed claim notices and application forms to current and former rent-stabilized and rent-controlled tenants in Croman’s buildings. Nearly 800 households filed applications for restitution funds.
“Croman tried to line his own pockets at the expense of his tenants’ wellbeing. We have zero tolerance for predatory landlords – and now, Croman tenants will finally get the restitution and protections they deserve as a result of this unprecedented settlement,” says Attorney General Barbara D. Underwood. “I’m pleased that this first round of checks will be going out before the holidays, and that tenants can expect at least three more rounds of restitution.”
To be eligible for restitution, tenants had to have lived in a rent-stabilized or rent-controlled apartment owned by Croman between July 1, 2011 and December 20, 2017, not including tenants who received a buyout of more than $20,000 (not including any amount that purported to cover rent or arrears).
Croman will make three additional installment payments to the restitution fund. The claims administrator appointed by the attorney general will send payments which will be determined based on the number of eligible claimants.
Based on the settlement, New York City Management, an independent company approved by the attorney general, is running over 100 Croman residential properties for five years. The company took over operations of the buildings on July 1, 2018. An independent monitor is also overseeing Cronan’s compliance with the consent decree, reporting to the attorney general for seven years. Community groups such as the Stop Croman Coalition and the Croman Tenants’ Alliance formed in response to the landlord’s conduct and remain active.
In 1990, Croman founded 9300 Realty, the real estate firm which managed Croman properties. The company sent the following statement to GlobeSt.com: “We are diligently implementing our settlement agreement with the state Attorney General in line with our focus on using best practices to provide quality housing for our residents.”
In October 2017, Croman was sentenced to a year in jail and paid a $5 million tax settlement following a separate criminal case filed by the New York attorney general’s office for fraudulent refinancing of loans and tax fraud.